Seniors looking for an additional source of income should think twice about letting unwanted life insurance lapse, because these policies may be sold for substantial value to help fund a better quality of life in their retirement.

... Ken Lester, a professor at McGill University’s Desautels Faculty of Management and CEO of Lester Asset Management Inc. in Montreal, says life settlements are a bit like reverse mortgages, which allow homeowners to take out a loan against the equity in their home to receive cash payments.